A monthly indicator measuring new orders placed with domestic manufacturers for goods designed to last three years or more. Durable goods orders reflect business investment confidence and can signal future economic activity.
What Durable Goods Orders Measures
Durable goods orders track new orders for products with a lifespan of three or more years, including machinery, vehicles, appliances, electronics, and defense equipment. The U.S. Census Bureau releases this data about 26 days after the month ends. The report includes both headline orders and core orders excluding volatile transportation items like aircraft.
Business Investment Signals
Durable goods orders are an important gauge of business investment sentiment. When companies order expensive, long-lasting equipment, it signals confidence in future revenue. Rising orders suggest businesses expect growth, while declining orders may indicate uncertainty or expected slowdowns.
The core reading (excluding defense and aircraft) is often called core capital goods orders and is considered the best proxy for business investment in the Gross Domestic Product (GDP) calculation.
Forex Trading Impact
Strong durable goods data supports the U.S. Dollar (USD) by reinforcing expectations for economic growth and potential rate hikes. Weak data has the opposite effect. The release can produce moderate volatility, especially when the result surprises in either direction.
Related Terms
Industrial Production
A monthly measure of output from the manufacturing, mining, and utilities sectors. Industrial production data helps gauge the strength of a country's productive economy and can influence currency direction.
Gross Domestic Product (GDP)
The total monetary value of all finished goods and services produced within a country during a specific period. GDP is the broadest measure of economic activity and a key driver of currency valuations.
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